- Cumulative 9 months volumes up 37%
- Growth margins narrowing on a quarterly basis
- Operation’s outlook solid, analysts contend
HARARE- Leading FMCG Probrands is trading impressively ahead of the prior year, Innscor, has revealed. Probrands, which has emerged strongly as a market leader in most of the business categories it operates, is an associate of the listed light manufacturer.
In a trading update for the 9 months period to March 2021, Innscor said Probrands volumes were 37% ahead of the prior year.
The behemoth said all of the unit’s core product categories contributed positively to the performance. Probrands lists 44 products under its brands mostly dominated by rice and milk products.
Probrands’ business involves the manufacturing of some of the products, value addition and a strong focus on marketing.
The company was established in 2007 on the back of down packing basic commodities and expanded into manufacturing. Innscor acquired a controlling stake of 39.
In 2015 Innscor acquired a 39.02% stake in Probrands and a 49% in Prodairy. At the material time, the business was in an expansion phase and has since grown to be a force in its segment.
Equity Axis analyst Tinashe Duma said, “The performance is impressive given the backdrop of economic challenges which impacted business in the prior year”.
He, however, said that despite trading ahead of the prior year, the margin of volume growth at Probrands is narrowing when compared to the half-year levels, which he said reflects a rising base or that volumes sold per quarter are beginning to come off. This trend has been observed in other segments of Innscor’s businesses including National Foods.
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